The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on Friday decided to lower the repo rate by 25 basis points, bringing it down to 5.25 percent immediately. RBI Governor Sanjay Malhotra announced the decision, and the MPC maintained its neutral stance.

Analysts noted that the December policy decision was a close call between a cut and a pause, considering the strong growth and low inflation.

India's GDP growth exceeded the RBI's expectations in both the June and September quarters. In the July-September quarter (Q2) of FY26, India's GDP grew by 8.2 percent, following a 7.8 percent rise in the June quarter.

Even the retail inflation, measured by the Consumer Price Index (CPI), cooled to 0.25 percent in October due to record-low food prices and the impact of the recent Goo

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